scholarly journals How Does Fiscal Policy Affect GDP and Inflation in Ukraine?

2018 ◽  
pp. 25-43 ◽  
Author(s):  
Artem Vdovychenko
Keyword(s):  
Fiscal Policy ◽  
Positive Impact ◽  
Fiscal Multipliers ◽  
Real Gdp ◽  
The Impact

In this study, we apply the Blanchard-Perotti approach to estimating the impact of fiscal policy on GDP and inflation in Ukraine. By disaggregating fiscal data, we were able to determine which items of the budget have the most influence on real GDP and inflation. Our results show that fiscal multipliers in Ukraine in absolute values are higher for budget expenditures than for taxes. In addition, both budget expenditures and taxes have a positive impact on inflation.

scholarly journals The Effects of Fiscal Policy Shocks in Morocco: An SVAR Approach

2018 ◽  
Vol 5 (2) ◽  
pp. 152
Author(s):  
Firdawss Tahri ◽  
Mohamed Karim
Keyword(s):  
Fiscal Policy ◽  
Economic Activity ◽  
Positive Impact ◽  
Empirical Studies ◽  
Structural Var ◽  
Vector Autoregressive ◽  
Fiscal Multipliers ◽  
Policy Shocks ◽  
Economic Balance ◽  
The Impact

Interest in assessing the effects of fiscal policy shocks on macroeconomic variables, especially on GDP, has surged in recent years, since it was expected to reestablish the economic balance after the recent recession. The majority of empirical studies estimate the impact of fiscal policy on economic activity using vector autoregressive (VAR) models. This paper analyzes the effect of fiscal shocks on economic activity by applying the structural VAR methodology proposed by Blanchard and Perotty (2002) to Moroccan data. The empirical findings are consistent with other studies related to emerging economies. This assessment reveals a positive impact of expansionary fiscal policy on economic activity. However, the fiscal multipliers are found to be very small, meaning that the economic activity is not significantly influenced by fiscal policy shocks.

scholarly journals Comparison of Nominal and Real Rigidities: Fiscal Policy Perspective

2014 ◽  
Vol 17 (1) ◽  
pp. 61-76
Author(s):  
Piotr Krajewski
Keyword(s):  
Fiscal Policy ◽  
Government Spending ◽  
Positive Relationship ◽  
Labour Supply ◽  
Wage Rigidity ◽  
Fiscal Multipliers ◽  
Strong Positive Relationship ◽  
Polish Economy ◽  
Consumer Habits ◽  
The Impact

This paper examines the impact of nominal and real rigidities in the economy on the effects of fiscal policy. The study confirmed the hypothesis that both nominal and real rigidities enhance the impact of fiscal policy on the Polish economy. In the case of nominal price rigidity it was found that the impact of government spending on GDP depends on the conduct of monetary policy. On the other hand, under conditions of wage rigidity, the strength of fiscal multipliers depends on the slope of the labour supply curve. The study also examined two types of real rigidities - lack of access to the credit market, and consumer habits. Analyses show that the above rigidities result primarily in a strong positive relationship between government spending and the level of consumption.

scholarly journals Analysis of the Impact of Fiscal Policy on Economic Growth in South Africa: VECM Approach

2018 ◽  
Vol 10 (2) ◽  
pp. 231
Author(s):  
Tshembhani Mackson HLONGWANE ◽  
Itumeleng Pleasure MONGALE ◽  
Lavisa TALA
Keyword(s):  
Economic Growth ◽  
South Africa ◽  
Fiscal Policy ◽  
Negative Impact ◽  
National Development ◽  
Real Gdp ◽  
Long Run ◽  
Fixed Capital Formation ◽  
The Government ◽  
The Impact

Fiscal policy ensures macroeconomic stability as a precondition for growth at the macro level. This study investigates the impact of fiscal policy on economic growth of South Africa from 1960 to 2014 through a Cointegrated Vector Autoregression approach. It seeks to contribute to the existing literature as well as in designing effective fiscal policy programmes which can propel economic performance. Theresults of the long run estimates revealed that government tax revenue has a positive and significant long run influence on economic growth, whereas the government gross fixed capital formation and budget deficit have a negative impact on real GDP. For that reason, the study recommends that some expansionary fiscal policy measures should be strengthened since they play a very important role in the economy so as to meet the government target of the National Development Plan Vision for 2030.

scholarly journals Fiscal policy and economic development

2020 ◽  
pp. 153-164
Author(s):  
Mykola Pasichnyi
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Fiscal Policy ◽  
Budget Deficit ◽  
Weight Ratio ◽  
Policy Formation ◽  
Gdp Growth ◽  
Fiscal Consolidation ◽  
Real Gdp ◽  
The Impact

The research subject includes the theoretical basis and mechanisms of fiscal policy formation and realization as an instrument of economic development regulation. The aim of the study is to improve the theoretical and methodological basis of fiscal policy formation and determine the peculiarities of its impact on economic development. Methods. In order to achieve the appropriate tasks, we used a set of methods and approaches, that helped to ensure the conceptual unity of our investigation. The dialectical, systemic and structural approaches, methods of analysis and synthesis, comparison, generalization,economic and mathematical modeling, scientific abstraction are applied. Results. In this paper, we explored the main instruments of fiscal policy, which affect economic development. The experience of advanced counties in fiscal consolidation and stimulus measures during the Great Recession was systemized. Also, the author investigated the budget deficit impact on real GDP growth in OECD countries over the 1981-2017 period. Practical implications. Fiscal policy and instruments of its implementation. Conclusions. The regulation of the tax burden on labor and capital influences the conjuncture of these factors in the market. Fiscal regulation is one of the determining reasons for the migration of labor and financial capital between different regions and countries. Given the multiplicity of combinations of tax bases and rates, the government has significant potential to impact on investment and consumer demand, and real GDP growth. The impact of budget expenditures on aggregate demand should be examined considering the level (ratio to GDP) and different composition structures. It is vital to raise the weight ratio of productive expenditures in the overall structure, which leads to foster economic growth. Particularly important are the special productive expenditures that are directed towards the development of human capital; which include expenditures on education, health care, physical development, R&D. It is crucial to establish a consistent relationship between public spending and the obtained results to form an effective fiscal policy. The budget should be balanced, which requires the implementation of systematic fiscal consolidation measures, and it has been found that the growth of the budget deficit slows down economic growth. The priority of fiscal policy is to reduce the debt burden.

scholarly journals International Remittances and Economic Growth in Ghana: Does the Measure Of Financial Development Matter?

2020 ◽  
Vol 2 (1) ◽  
pp. 46-59 ◽  
Author(s):  
Samuel Antwi ◽  
Eugene Oware Koranteng ◽  
Eugene Oware Koranteng
Keyword(s):  
Economic Growth ◽  
Financial Development ◽  
Time Series Data ◽  
Negative Impact ◽  
Positive Impact ◽  
Series Data ◽  
Aggregate Output ◽  
Real Gdp ◽  
International Remittances ◽  
The Impact

Empirical results of the effect of international remittances on economic growth of individual countries and groups of countries have yielded mixed results. This study is intended to add to the debate on the impact of international remittances on the aggregate output of individual countries, Ghana in this case. An earlier panel data study found a negative impact of remittance on real GDP and prompted further research on the topic for individual countries and groups of countries. The papers which followed and were able to correct for endogeneity in the models, found a mild positive impact of private unrequited remittances on economic growth. The impact of remittances on economic growth of a particular country depends on the proportion of remittances invested and consumed, the level of financial development and the quality of institutions in the country. This study used time series data from 1990 to 2014 on Ghana and found a positive impact of remittances on the growth rate of real GDP. Engel and Granger Cointegration test and Error Correction Models were used. Remittances were found to be pro-cyclical. Granger causality tests which corrects for the errors of cointegrated variables found causality running from financial development to remittances and from remittances to real GDP. Remittances have been found in other studies to benefit the Ghanaian economy by reducing poverty and sustaining the current account. This study shows a positive impact of remittances on aggregate output. Thus requiring policies to increase the flows and encourage their investment. Keywords: International Remittances, Economic Growth, Ghana, Financial Development.

scholarly journals Fiscal Policy, FDI and Macroeconomic Stabilization

2016 ◽  
Vol 9 (2) ◽  
pp. 131-146 ◽  
Author(s):  
Claudiu Tiberiu Albulescu ◽  
Nicolae Bogdan Ianc
Keyword(s):  
Fiscal Policy ◽  
Positive Impact ◽  
Panel Data Analysis ◽  
Tax Burden ◽  
Fiscal Policies ◽  
Macroeconomic Stabilization ◽  
Fdi Inflows ◽  
Pooled Mean Group ◽  
Long Run ◽  
The Impact

AbstractThe purpose of this paper is to investigate the impact of counter-cyclical fiscal policies and FDI inflows on macroeconomic stabilization in the selected Euro area countries. Performing a panel data analysis for 9 economies over the timespan 1980-2014 and, using a Pooled Mean Group estimator, it was shown that a counter-cyclical fiscal policy, associated with a lower tax burden during turbulent economic times, contributes to the reduction of output volatility. At the same time, increased FDI inflows positively influence the macroeconomic stabilization. In addition, a reduced volatility of investment inflows has a positive impact on the economic growth stabilization, but this result is sensitive to the way the tax burden is calculated. In a nutshell, the findings show that, in the long-run, authorities should resort to counter-cyclical fiscal policies and encourage FDI inflows to stabilize the economy and, thus, reduce the amplitude of business cycles.

scholarly journals El impacto de la dolarización en el sistema económico: Caso Ecuador 2000- 2016

ECA Sinergia ◽  
2019 ◽  
Vol 10 (1) ◽  
pp. 38
Author(s):  
Jorge Calderón Salazar ◽  
Sandra Zambrano
Keyword(s):  
Economic Growth ◽  
Money Supply ◽  
Positive Impact ◽  
Monetary System ◽  
Real Gdp ◽  
Palabras Clave ◽  
El Sistema ◽  
Macroeconomic Indicators ◽  
The Impact ◽  
The U.S

  La investigación se centró en estudiar el impacto de la dolarización en el sistema económico utilizando como instrumentos de estudio indicadores macroeconómicos de alta relevancia, mediante análisis de datos de serie de tiempo se exploraron los cambios en la inflación, el crecimiento del PIB, la oferta monetaria y la liquidez, por tal se deduce, en primer lugar, que una vez implementada la dolarización la inflación disminuyó, en segundo, el PIB real y nominal presentan estabilidad ya que ha tenido un crecimiento notable, tercero, la oferta monetaria M1 y la liquidez total M2 aumentaron, concluyendo que la dolarización generó un impacto positivo en la economía ecuatoriana sin embargo existen otros factores importantes que limitan el crecimiento económico de los últimos años como es la caída del petróleo, la apreciación del dólar, el desastre natural sucedido en el año 2016, la falta de inversión extranjera, entre otros.   Palabras clave: sistema monetarios, inflación, mercado financiero y maroeconomico.   ABSTRACT   Research focused on the study of the impact of adopting the U.S. dollar as the official currency of Ecuador on the economic system, using highly relevant macroeconomic indicators by analysis of data of time series. It was possible to explore the changes in inflation, GDP growth, money supply and liquidity. It follows that firstly that once dollarization has been implemented inflation has declined; secondly the real GDP and Nominal growth are stable since it has had a notable economic growth; thirdly, the money supply M1 and total liquidity M2 have increased, concluding that dollarization has had a positive impact on the Ecuadorian economy, however, there are other important factors that prevent economic growth in recent years as, among others, the fall of oil prize, the dollar appreciation, natural disaster which occurred in 2016, and the lack of foreign investment.   Key words: monetary system, inflation, financial market and maroeconomico.

scholarly journals THE IMPACT OF FISCAL POLICY TOWARD ECONOMIC PERFORMANCE AND POVERTY RATE IN INDONESIA

2010 ◽  
Vol 12 (4) ◽  
pp. 391-424
Author(s):  
Indra Maipita ◽  
Mohd. Dan Jantan ◽  
Nor Azam Abdul Razak
Keyword(s):  
Fiscal Policy ◽  
Income Distribution ◽  
Economic Performance ◽  
Household Income ◽  
Negative Impact ◽  
Positive Impact ◽  
Poverty Rate ◽  
Policy Measures ◽  
The Government ◽  
The Impact

The government is continuously formulating some policies in order to boast economic growth and downsize poverty rate. However, the government is facing some obstacles such as an increasingly in budget deficit which is potentially impacting to the determining of priority scale as well as the pro and contra within it. Based on that consideration, economic policy is needed to be revised and redesigned in order to meet the need of pro growth, pro job, and pro poor. Generally, this research aims to examine the impact of an expansion and contraction of fiscal policy measures on Indonesia economic performance. For the purpose of this study, the change of macro economic indicators, economic sector performance, and the change of poverty and income distribution are examined using the Computable General Equilibrium (CGE) model. In order to evaluate the disparity of income distribution, beta distribution function is used which is adopted from Decaluwe, et al. (1999). This study employs Foster, Greer, and Thorbecke (F-G-T) and Cockburn (2001) methods to evaluate poverty (poverty incidence) on each household group. The results of this study show that the impact of an increase in subsidy is more favourable than two others fiscal policy measures. Even though the policy of transfer income gives a positive impact for the upsizing of rural household income and the downsizing in poverty, but on the other hand it has negative impact on others household income which aggregately has a negative impact on the decreasing of GDP. JEL Classification: I32, E62.Keywords: fiscal policy, poverty, income distribution

scholarly journals Fiscal Policy, Factors of Endogenous Growth and Dynamics of Slovenian Exports

2021 ◽  
Vol 32 (1) ◽  
pp. 27-34
Author(s):  
France Krizanic ◽  
Sabina Hodzic ◽  
Borut Vojinovic
Keyword(s):  
Economic Growth ◽  
Fiscal Policy ◽  
Financial Incentives ◽  
Positive Impact ◽  
Technological Development ◽  
Panel Data Analysis ◽  
Modern World ◽  
Investment Incentives ◽  
Endogenous Factors ◽  
The Impact

In the modern world of rapidly changing technologies, fiscal policy engagement is also needed to promote and adapt to these changes. In order to achieve economic growth, every country needs to ensure an adequate institutional environment and financial incentives for technological development. These investment incentives operate through tax system directly or indirectly. The aim of the paper is to assess the impact of Slovenia's endogenous economic growth factors on exports in the 2009–2016 period. A panel data analysis was applied to obtain empirical results. The analysis showed that a 1% real increase in government subsidies to the economy over three subsequent years increases real investment in research and development by 0.45%, and after a two-year period yields a 0.27% increase in employment of persons with higher education. The latter has a 0.14 % positive impact on the growth of exports after another three-year term. In addition to endogenous factors of economic growth in the Slovenian case, exports are also affected by the dynamics of real world trade, by the dynamics of exchange rates corrected for relative prices, and by the dynamics of wage rates.

scholarly journals BUSINESS UNCERTAINTY AND THE EFFECTIVENESS OF FISCAL POLICY IN GERMANY

2017 ◽  
Vol 23 (4) ◽  
pp. 1442-1470 ◽  
Author(s):  
Tim Oliver Berg
Keyword(s):  
Fiscal Policy ◽  
Positive Impact ◽  
Structural Vector Autoregression ◽  
Business Climate ◽  
Firm Level ◽  
State Dependent ◽  
Long Run ◽  
Level Data ◽  
Short Run ◽  
The Impact

There are suggestions that increased uncertainty makes fiscal policy temporarily less effective. In this paper, I examine the relationship between business uncertainty and fiscal policy effectiveness in Germany. I use measures of business uncertainty that are derived from the firm-level data of the Ifo Business Climate Survey and interact them with the parameters of a structural vector autoregression to produce state-dependent spending multipliers. The impact of increased uncertainty on the spending multiplier is generally small and often statistically not significant in the short run. By contrast, I obtain a significant positive impact on the long-run multiplier. These baseline results are supported by a variety of robustness checks and specifications.

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